Information Technology Reference
In-Depth Information
3. An investor who has the securities can check the results of the investment from
each security.
4. The change of status of the cash flows are propagated from the servicer to the
investors.
5. The debtors can check the negotiation of the securities.
Each function of the DRM system can also be used for the function of the
securitization system. Function 2 and 3 are installed as the function of resolving
copyrights on the DRM system. Function 4 is installed as the function of updating
contents. Function 5 is installed as the function of check the purpose of usage.
Therefore, we can install these functions for the securitization on the DRM system.
12.6.4 Processes of the Securitization
12.6.4.1 Securitization
In our system, the structure of the securities is defined as follows.
The information capsule of the securities contains a body of the agent, a body of
the securities, a key for the encrypted securities, a identifier of the debtor or SPV, a
contract described in XML, an evaluation method of the result of the investment
and conditions of management in repackaging and tranching.
If the security is repackaged, one agent and information of the source or original
securities. In this case, we call the agent of the repackaged security and agent of the
sources the master agent and the slave agent, respectively.
First, the debtor issues a bond to the originator. The structure of the bond is
similar to the securities except the issuer is the debtor. The bond is transferred from
the originator to the SPV. Next the SPV issues the capsule of the securities to the
investor. The copies of the securities are then sent to the servicer. The agent at the
debtor and servicer exchange the information and the servicer monitors the cash
flows.
12.6.4.2 Repackaging and Pooling
Figure
12.7
shows the process of the repackaging. This process is similar to the
process of secondary use in copyright management. All bodies of securities are
concatenated or processed appropriately as new, repacked securities. Each infor-
mation capsule of securities is concatenated or aggregated. The aggregation is key
to the repackaging. First, the aggregated agent inherits the functions of previous
agents. Then identifiers of debtors are stored into a database.
